Massachusetts regulates residential security deposits tightly, and nearly every penalty for getting the rules wrong falls on the landlord. This article explains what a landlord can collect before move-in, the receipt and condition statement the law requires, the interest a tenant is owed, the 30-day return deadline, and the narrow list of allowed deductions. It is one of the topics covered in Massachusetts landlord-tenant law, the broader reference for deposits, leases, and evictions. The controlling statute is M.G.L. c. 186, § 15B, and the state Trial Court publishes a law-library guide to tenants’ security deposits that collects the statute, regulations, and case law in one place.
How much a landlord can collect before move-in
At or before the start of a tenancy, a Massachusetts landlord may collect no more than three payments: the first full month’s rent, the last full month’s rent, and a security deposit equal to the first month’s rent, under M.G.L. c. 186, § 15B(1)(b). The security deposit itself cannot be larger than one month’s rent. A demand for two months’ deposit, a separate nonrefundable pet deposit, or an up-front cleaning fee asks for money the statute does not permit.
What a landlord can require at signing overlaps with the broader Massachusetts residential lease requirements that govern move-in paperwork and disclosures.
The receipt and statement of condition
A landlord who accepts a deposit must give the tenant a written receipt and a separate statement describing the unit’s condition. Under M.G.L. c. 186, § 15B(2), the landlord furnishes the signed statement of condition upon receiving the deposit or within 10 days after the tenancy begins, whichever is later. A tenant who disagrees with the description can attach a signed list of existing damage and return it within 15 days after receiving the statement or moving in, whichever is later.
The deposit does not become the landlord’s money. M.G.L. c. 186, § 15B(3) requires the landlord to hold it in a separate, interest-bearing account in a Massachusetts bank, on terms that keep it beyond the reach of the landlord’s creditors, including a foreclosing mortgagee or a trustee in bankruptcy.
Interest on the deposit
A security deposit held for a year or more earns interest for the tenant. M.G.L. c. 186, § 15B(3) sets the rate at 5% per year, or the lesser amount the bank actually paid on the account. The landlord pays the interest each year, and at the end of the tenancy the tenant is owed any interest not already paid.
If a landlord holds the deposit and fails to pay or account for the interest, the tenant can recover three times the wrongly withheld interest, plus court costs and reasonable attorney’s fees, under M.G.L. c. 186, § 15B.
The 30-day deadline to return the deposit
The central deadline is 30 days. Under M.G.L. c. 186, § 15B(4), the landlord must return the deposit, or the balance left after lawful deductions, within 30 days after the tenancy ends. The clock runs from the end of the tenancy, whether the term expired, the parties agreed to end it, or the tenant left early, a situation covered in breaking a lease without penalty in Massachusetts.
What a landlord can deduct
M.G.L. c. 186, § 15B(4) allows only a short list of deductions from the deposit:
- Unpaid rent that the tenant did not validly withhold or deduct
- Unpaid water charges the tenant is responsible for
- An increase in real estate taxes the tenant agreed in writing to pay
- The reasonable cost of repairing damage the tenant caused, beyond reasonable wear and tear
For any damage deduction, M.G.L. c. 186, § 15B(4) requires the landlord to give the tenant, within the 30 days, an itemized list of the damage sworn under the penalties of perjury, together with written evidence such as estimates, bills, invoices, or receipts. Normal wear and tear cannot be charged to the tenant, and a landlord cannot deduct for conditions the law already requires the landlord to fix under the Massachusetts warranty of habitability.
Penalties for mishandling a deposit
Massachusetts backs these rules with unusually strong penalties. Under M.G.L. c. 186, § 15B(6), a landlord forfeits the right to keep any part of the deposit, and loses the right to counterclaim for damage in a suit over the deposit, by failing to hold the money in a proper account or failing to send the itemized, sworn list of damages within 30 days.
Some violations go further. M.G.L. c. 186, § 15B(7) awards the tenant three times the deposit or the balance owed, plus 5% interest and reasonable attorney’s fees, when a landlord fails to keep the deposit in a separate account, fails to return it within 30 days after the tenancy ends, or keeps an amount not supported by the sworn statement. The Trial Court’s overview of Massachusetts landlord and tenant law links the related consumer-protection regulations that also govern deposits.
Give the landlord a forwarding address
Providing a written forwarding address at the end of the tenancy tells the landlord where to send the deposit and interest and creates a clear record of when the 30-day period starts.
Wait out the 30-day period
Under
M.G.L. c. 186, § 15B(4), the landlord has 30 days after the tenancy ends to return the deposit or send a sworn, itemized list of deductions with supporting evidence.Send a written demand
If the deadline passes with no deposit and no itemized statement, a written demand for the money creates a dated record before any court filing.
File in court if the deposit is withheld
A tenant can sue to recover the deposit. Where the triple-damage provisions of
M.G.L. c. 186, § 15B(7)apply, the award can include three times the deposit plus interest, costs, and attorney’s fees.
Frequently asked questions
Can a Massachusetts landlord charge a nonrefundable cleaning or pet fee?
No. M.G.L. c. 186, § 15B(1)(b) limits the up-front payments to first month’s rent, last month’s rent, and a security deposit of no more than one month’s rent. A separate nonrefundable cleaning fee or pet fee falls outside what the statute allows.
What happens to the deposit if the building is sold or the landlord files for bankruptcy?
The deposit is the tenant’s money, not the landlord’s. M.G.L. c. 186, § 15B(3) requires it to be held beyond the reach of the landlord’s creditors, including a foreclosing mortgagee or a trustee in bankruptcy. Federal bankruptcy law separately lets a residential tenant keep possession under an existing lease when a landlord-debtor’s lease is rejected, under 11 U.S.C. § 365(h).
Does interest have to be paid every year or only at the end?
Under M.G.L. c. 186, § 15B(3), interest is paid annually at 5% per year or the lesser rate the bank paid. Any interest not paid during the tenancy is owed when the deposit is returned.
Is a tenant automatically entitled to triple damages for a late return?
Not for every violation. The triple-damage remedy in M.G.L. c. 186, § 15B(7) applies to specific failures, such as not keeping the deposit in a separate account, not returning it within 30 days after the tenancy ends, or keeping an amount not backed by a sworn itemized statement. A court decides whether the facts meet the statute.
Can a landlord deduct for ordinary wear and tear?
No. M.G.L. c. 186, § 15B(4) allows deductions only for unpaid rent, certain unpaid charges, agreed tax increases, and repair of damage beyond reasonable wear and tear. Fading paint, worn carpet, and similar aging from ordinary use cannot be charged to the tenant.